Dazheng-Led Consortium Raises Hollysys Automation Acquisition Bid to $1.8B, Offers 9% Increase
Portfolio Pulse from Lekha Gupta
Hollysys Automation Technologies Ltd (NASDAQ:HOLI) received an increased acquisition offer from a consortium led by Dazheng Group Acquisition Limited, raising the bid to $29.00 per share, or approximately $1.8 billion in cash. This offer is a 55.5% premium over HOLI's August 23, 2023, closing price and a 40.8% premium over the November 3, 2023, closing price. It also represents a 9.4% increase from the consortium's previous offer and Ascendent's competing offer. The consortium aims to finalize a merger agreement with HOLI by January 22, 2024. HOLI shares rose 6.19% to $27.10 after the announcement.
December 26, 2023 | 2:20 pm
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Hollysys Automation Technologies Ltd received a raised acquisition offer from Dazheng Group Acquisition Limited at $29 per share, totaling about $1.8 billion. The offer is significantly higher than previous bids and the current share price, indicating a strong interest in acquiring the company.
The increased acquisition offer for HOLI represents a substantial premium over its recent closing prices, which is likely to be viewed positively by investors and could lead to a short-term increase in the stock price. The fact that the offer is also higher than a competing bid suggests a strong likelihood of the acquisition proceeding, further bolstering investor confidence.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100